Abstract
This study examines how U.S. and German money affected the domestic money and income of a number of open economies for the floating exchange rate period from 1973 to 1986. We use a multivariate simultaneous equation technique proposed by Geweke and extended by Sheehan, and quarterly historical data. Variance decomposition analyses were performed as well to verify our findings. Our results suggest that changes in the U.S. money stock influence domestic money or income, or both, of countries with fully floating exchange rates. German money causes either domestic income or money of selected European Monetary System (EMS) countries as well as of non-EMS members. The tests indicate that German money influences other European countries at least as pervasively as U.S. money does.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
